The  Advancement 
of  CHICAGO  as 
a  \  mancial  Center 
up  to  the  close  f 

the  XIX.  Gentiirv 


The    M  e  •  c  ha  •    s*  Loan 

a  [id    Tras  t    C  o  m  pa  n  \ 


n*vr«f  jfj.   Library 


LIBRARY  OF  THE 
UNIVERSITY  OF  ILLINOIS 
AT  URBANA-CHAMPAIGN 


332.1 

M5365a 

I .E.3. 


The 

Advancement  of  Chicago 

as  a   Financial 

Center 


Up  to  the  Close  of  the 
Nineteenth  Century 


THE   MERCHANTS'  LOAN 
AND   TRUST    COMPANY 

ADAMS    AND     CLARK    STS 
CH ICAGO 


Entered  according  to  Act  of  Congress 

in  the  office  of  the  Librarian  of  Congress,  at  Washington,  D.C. 

by  The  Merchants'  Loan  and  Trust  Company 

of  Chicago,  Illinois 


f 
1 


Introductory. 


ALTHOUGH    the    advancement    of 
Chicago  as  a  financial  center  has 
been    very  remarkable,  most  men 
living    in    Chicago    and    the    West    have 
become    so  used    to    rapid  progress  in  so 
many    ways,  and  stupendous    affairs  have 
become  so  commonplace,  that  every   kind 
of    advancement  is   taken  as    a   matter   of 
course,  and  our  financial  advancement  has 
been  comparatively  lost   sight  of. 

Due  consideration  has  not  been  given 
heretofore  to  the  great  strides  made  by 
that  commercial  machine  which  is  the  true 
index  of  stability  in  all  the  business  of  the 
community,  and  is  also  the  "right  hand" 
in  the  advancement  of  its  business,  The 
Financial  Institution. 


It  is  sometimes  necessary  to  remind  men 
of  a  fact  to  make  them  realize  it  fully. 
It  is  our  hope  that  this  book  will  act  in 
that  capacity  and  will,  in  some  degree,  bring 
the  reader  to  a  realization  of  the  city's 
present  financial  importance  and  its  future 
possibilities. 

If  a  city  and  its  institutions  can  attain  so 
marked  a  prominence  in  little  over  half  a 
century,  what  may  not  reasonably  be  ex- 
pected of  them  in  the  near  future  ? 


Along  the  Line  of  Prediction. 

THERE  have  been  some  seemingly 
extravagant    predictions    as   to   the 
future    financial  power  of    Chicago. 
But  the  basis  of  those  predictions  and  the 
advancement  so  far  made  along  the  line  of 
fulfillment  is  certainly  food  for  thought. 

With  the  far-reaching  power  of  the  Bank 
of  England,  the  numerous  heavily-capital- 
ized banks  of  Great  Britain,  the  Bank  of 
France,  the  vast  accumulation  of  capital 
in  the  countries  of  the  old  world,  and  the 
concentration  of  capital  and  financial  opera- 
tions in  New  York  City,  it  may  seem  Quix- 
otic to  suggest  that  affairs  are  shaping 
themselves  for  the  amassing  in  the  near 
future  of  resource,  capital,  and  financial 
control  in  the  business  center  of  the  Mis- 
sissippi Valley.  But  if  the  predictions  of 
those  supposed  to  be  competent  to  judge 
of  such  matters  are  of  account,  then  the 


dynamic  force  in  the  conditions  which  here 
exist  must  sooner  or  later  evolve  a  financial 
power  that  will  be  one  of  the  greatest,  if 
not  the  greatest,  in  the  financial  world. 

Every  writer  and  thinker  who  has  given 
the  subject  consideration  is  loud  in  the 
assertion  that  the  Mississippi  Valley  is  pos- 
sible of  the  highest  state  of  development — 
that  it  has  the  capability  of  sustaining  a 
greater  population  than  any  similar  area  on 
the  face  of  the  earth,  and  that,  because  of 
its  general  latitude,  within  the  temperate 
zone,  a  higher  state  of  civilization  will  be 
attained  here  than  any  before  known. 

A  member  of  the  Royal  Commission  of 
Great  Britain  and  Ireland,  in  an  address 
to  the  manufacturers  of  that  country,  set- 
ting forth  the  importance  of  having  exhib- 
its at  the  World's  Columbian  Exhibition, 
speaks  of  Chicago  and  the  West  in  these 
words: — 

I  wonder  how  many  have  a  clear  idea  of  the 
importance  of  Chicago  as  a  great  commercial  cen 


ter.  Half  a  century  ago  it  was  still  outside  the 
pale  of  civilization,  but  the  rapid  growth  of  the  pop- 
ulation of  the  United  States  and  its  consequent 
march  westward  changed  the  relative  conditions, 
until  today  the  center  of  gravity  of  the  population  is 
abreast  of  Chicago. 

Almost  all  circumstances,  natural  as  well  as  arti- 
ficial, have  favored  this  rapid  growth.  As  the  con- 
tinuous waves  of  progress  have  swept  across  the 
continent  they  have  steadily  raised  Chicago  to  the 
higher  eminence  and  into  the  present  position  of 
importance. 

Chicago  is  sui  generis :  a  city  of  the  nineteenth 
century,  made  unique  by  the  energy  of  her  people, 
by  the  advantages  of  her  geographical  position,  by 
the  development  of  the  Middle  Western  States,  and 
above  all,  by  the  facilities  of  communication  which 
enable  her  to  stretch  out  her  hands  laden  with 
true  riches,  the  products  of  the  soil. 

The  grain-growing,  cattle-raising  and  mining 
West  pours  its  wealth  into  the  city  as  the  center, 
whence  it  is  distributed  throughout  the  world. 

And  with  the  steady  development  of  this  great 
West,  of  which  the  resources  are  only  now  begin- 
ning to  be  utilized,  the  importance  and  wealth  of 
Chicago  must  increase  and  increase  rapidly. 

We  can  form  but  a  very  limited  idea  of  the 
extent  and  future  possibilities  of  the  States  lying 


west  of  the  Mississippi,  the  development  of  which 
directly  affects  the  trade  of  Chicago. 

It  would  seem  as  if  the  future  destinies  of  the 
United  States  must  be  controlled  from  the  West, 
where  the  population  is  growing  with  so  much 
rapidity,  where  energy  is  unbounded,  and  where 
the  wealth  of  the  soil,  as  of  the  riches  hidden 
beneath  its  surface,  is  inexhaustible. 

The  unrivalled  resources  of  the  West,  together 
with  the  unequaled  enterprise  of  her  citizens,  are  a 
sure  prophecy  of  superior  wealth. 

The  West  surpasses  in  agriculture,  stock-raising, 
mining,  and  eventually  will  surpass  in  manufactur- 
ing. It  is  safely  predicted  that  however  many 
rival  cities  may  in  the  future  contest  the  trade  and 
prosperity  created  by  this  Western  development 
with  Chicago,  the  metropolis  of  the  Great  Lake 
Region  must  continue  to  retain  her  pre-eminence. 

Great  as  Chicago  is,  the  period  of  her  true  great- 
ness has  yet  to  come. 

Standing  on  the  balcony  of  the  Woman's 
Building  at  the  World's  Fair,  and  contem- 
plating the  vastness,  the  beauty,  and  the 
success  of  that  immense  undertaking,  an 
Eastern  man  remarked  that  only  Chicago 
could  carry  up  to  so  great  a  success  such 

10 


an  undertaking,  and  that  it  was  because 
Chicago  belonged  to  the  great  West;  that 
throughout  all  the  Western  country  every- 
one feels  a  claim  on  the  city;  that  it  is 
his  or  her  city.  Therefore,  when  the  Fair 
was  projected,  every  man,  woman,  and  child 
throughout  that  territory  made  it  his  or  her 
business  to  see  that  it  was  a  success. 

The  entire  Western  country  looks  upon 
Chicago  as  its  representative  market-place, 
and  this  same  spirit  which  pervades  the 
people  of  the  great  West  is  spreading  out 
beyond  ;  to  the  East,  the  South,  the  West 
Indies,  Mexico,  Central  America,  the 
Pacific  Coast  and  to  Europe  and  Asia. 
The  business  attracted  to  this  as  the  great 
distributing  center  from  those  sections  is 
already  enormous,  and  is  rapidly  increasing. 
The  market  for  many  of  their  products 
is  practically  controlled  here,  which  means 
that  here  must  be  performed  a  large  part  of 
their  other  commercial  transactions. 

Moreover,  the  Hawaiian  and  Philippine 

11 


Islands  and  Alaska  promise  to  be  no  small 
factors  in  commerce,  and  as  the  business 
with  those  territories  must  necessarily  be 
carried  on  through  the  Pacific  Coast  cities, 
we  in  turn  will  get  our  relative  share.  The 
discovery  of  gold  in  Alaska  brought  an 
increased  volume  of  business  to  the  Pacific 
Coast  States,  and  immediately  the  effect 
was  felt  here. 

The  prediction  that  the  Pacific  Ocean 
will  be  the  great  commercial  highway  of 
the  future  is  becoming  familiar. 

The  awakening  of  Japan,  open  trade 
relations  with  China  that  the  near  future  is 
sure  to  develop,  and  the  prospect  of  the 
early  completion  of  an  Isthmian  Canal,  all 
point  to  a  nearer  fulfillment  of  that  prophecy 
than  has  generally  been  supposed. 


Present  Conditions. 

CHICAGO  controls  the  market  of  the 
food  products  of  the  world,  and  is 
therefore  the  natural  distributing 
center  for  those  products. 

Its  immediate  territory  is  an  expanse  of 
country  fifteen  hundred  miles  in  breadth, 
almost  every  acre  of  which  is  of  the  highest 
productive  quality. 

This  territory,  this  Mississippi  Valley 
alone,  produces  more  bread  stuffs  than  all 
the  rest  of  the  world  combined.  There  are 
two  States  within  this  area  either  of  which 
produces  more  corn  than  all  the  corn  pro- 
duced outside  of  the  United  States. 

Here  are  located  the  greatest  meat  pack- 
ing establishments  in  the  country  and  the 
greatest  system  of  yards  for  the  handling 
of  live  stock  for  shipment  and  for  supply- 
ing the  packing  establishments. 

13 


Because  of  the  immense  trade  in  the 
products  of  this  territory,  it  has  become  the 
objective  point  of  more  than  half  the  rail- 
roads of  the  country,  the  aggregate  length 
of  which  is  over  80,000  miles. 

Being  therefore  the  great  railroad  center, 
as  a  natural  result,  manufactories  of  all 
kinds,  large  and  small,  have  become  estab- 
lished, so  that  today  the  number  of  enter- 
prises in  which  we  take  the  lead  are  beyond 
the  belief  of  those  not  well  informed  on  the 
subject. 

Because  of  its  distributing  facilities  Chi- 
cago has  also  become  a  great  wholesale 
center.  The  system  of  inner  and  outer  belt- 
line  railroads  affords  manufacturers  and 
wholesalers  in  any  part  of  the  city  or  out- 
lying districts  the  closest  competitive  ship- 
ping rates  over  the  thirty-seven  roads  that 
branch  out  in  every  direction. 

The  situation  of  Chicago  at  the  head  of 
navigation  on  the  Great  Lakes  makes  it  by 
nature  the  commercial  port  for  this  great 


region.  The  Indian  knew  of  its  advantages 
in  this  respect,  even  before  the  coming  of  the 
white  man;  and  now  that  the  partial  devel- 
opment of  the  West  has  given  it  a  thorough 
test,  it  still  holds  its  prestige.  The  general 
recognition  of  it  is  compulsory.  Last  year 
the  estimated  tonnage  received  at  this  port 
was  over  8,000,000. 

As  the  tide  of  settlement  and  develop- 
ment swept  on,  all  the  attendant  trade  and 
commercial  enterprise  came  with  it. 

One  after  another,  in  rapid  succession, 
supremacy  in  different  lines  was  attained ; 
and  although  at  times  when  some  great 
enterprise  was  located  in  some  other  of 
the  cities  of  the  valley,  it  was  thought  the 
advance  had  been  checked,  still  it  swept 
onward. 

The  great  advancements  of  the  past 
were  made  in  waves,  and  so  accustomed 
are  the  people  to  take  our  progress  as  a 
matter  of  course  that  the  present  tremen- 
dous, steady  onward  march  excites  but  little 


comment ;  yet  statistics  show  that  it  is 
greater  than  ever. 

One  may  form  some  idea  of  the  magni- 
tude and  the  growth  of  Chicago's  business 
by  contemplating  the  following  figures  : — 

The  estimated  total  business  of  the  city 
for  the  year  1900  was  $1,963,000,000  —  an 
increase  of  1 2  ^  per  cent  over  the  previous 
year,  and  the  bank  clearances  for  that 
year  were  $6,795,876,000  —  an  increase 
of  $183,563,000  over  the  previous  year. 
These  figures  are  significant,  as  the  four 
great  Atlantic  cities,  New  York,  Boston, 
Philadelphia  and  Baltimore  all  showed  a 
falling  off  from  the  clearings  of  1899, 
whereas  Chicago,  St.  Louis,  Pittsburg  and 
San  Francisco  showed  an  increase. 

The  more  important  receipts  from  the 
country  in  grain,  live  stock,  and  produce 
during  this  same  year  were : 

Corn      ....      Bushels,  134,664,000 
Oats       ....  "         105,227,000 

Wheat   ....  "  48,000,000 

10 


Cattle Head,  2,735,000 

Sheep "  3,500,000 

Horses "  120,000 

Hogs "  8,715,000 

Butter    ....      Pounds,  245,000,000 

Cheese   ....            "  115,384,000 

Lard       ....            "  60,665,000 

Potatoes       .      .      .      Bushels,  10,290,000 

The  total  value  of  food  stuffs  of  all  kinds 
received  amounted  to  $570,000,000. 

Another  important  factor  in  the  city's 
business  is  its  lumber  trade. 

The  forests  of  the  north  found  this  the 
natural  outlet,  and  soon  it  became  the 
greatest  lumber  market  in  the  world. 
Besides  becoming  the  market  for  Northern 
pine  it  also  became  the  market  for  Southern 
pine  and  for  the  Middle  States  hardwood, 
and  the  Mexican,  Cuban  and  South  Ameri- 
can fine  woods  and  veneers.  The  receipts 
of  lumber  for  the  year  1900  were  1,672,- 
000,000  feet,  amounting  to  a  business  of 
about  $45,000,000. 

17 


In  return  for  these  and  other  receipts 
we  disbursed  throughout  the  country  and 
the  world  manufactured  products  to  the 
amount  of  $786,000,000,  and  wholesaled 
goods  to  the  amount  of  $741,000,000,  some 
items  of  which  are  pertinent.  These  we 
quote  from  the  annual  statements  of  the 
daily  press  : 

Dry  Goods $143,000,000 

Groceries      -.      .      .      .      .  99,000,000 

Clothing          .....  35,000,000 

Shoes 58,500,000 

Books  and  Paper       .      .      .  70,000,000 

Tobacco  and  Cigars        .-     .  25,000,000 

Hardware        ....'»  39,000,000 

Iron  and  Steel  Manufactures  125,000,000 

Pig  Iron     .      ...      .-      .      .  12,000,000 

Coal      .      .      .      ... ,. . ...  «x  5t  29,000,000 

Drugs  and  Chemicals     .      .  1 5,000,000 

Crockery  and  Glassware       .  7,500,000 

Hats  and  Caps     .      .      .      .  13,000,000 

Millinery    ......  10,000,000 

Oil        .     ."; 17,000,000 

Dried  Fruits   .....  4,500,000 

Furs     .     .-    .     .     .     .     .  3,000,000 

18 


Carriages,  etc $  5,500,000 

Automobiles 5,000,000 

Pianos  and  Musical  Instrum'ts   14,000,000 

Music 9,500,000 

Paper  Stock 5,500,000 

Wooden  and  Willowware     .  9,000,000 

Wine  and  Spirits        .      .      .  22,000,000 

Jewelry,  Diamonds,  etc.        .  32,000,000 

Pig  Lead  and  Copper     .      .  8,250,000 

Electrical  Supplies     .      .      .  25,000,000 

Paint  and  Varnish      .      .      .  20,000,000 

Cloaks  and  Suits        .      .      .  8,000,000 

Sporting  Goods   .      .            .  6,210,000 

Hides 17,000,000 

Wool 12,000,000 

Leather  and  Leather  Mfgs.  18,000,000 

Agricultural  Machinery     .      .  40,000,000 

Stoves 27,000,000 

Bread  and  Crackers    .      .      .  26,000,000 

Furniture 25,000,000 

Brick,  Stone,  etc.          .      .      .  6,000,000 

Soaps  and  Perfumes   .      .      .  16,000,000 

Fish 13,000,000 

Glass 9,000,000 

Paper 12,000,000 

Vinegar,  Pickles,  etc.        .      .  2,500,000 

19 


Chicago's  supremacy  in  manufacturing 
and  wholesaling  covers  many  branches  of 
industry.  In  the  line  of  furniture,  either 
household,  office,  or  school,  she  leads  the 
world.  She  is  the  largest  manufacturer  of 
clothing.  In  dry  goods  the  house  of 
Marshall  Field  &  Company  is  the  largest 
and  finest  in  America  and  probably  in 
the  world. 

The  Illinois  Steel  Company,  the  largest 
producer  of  rails  in  the  world,  does  a 
manufacturing  business  of  upwards  of  fifty- 
five  millions  a  year,  supplies  a  field  cover- 
ing the  whole  of  the  United  States  and 
Canada,  and  is  dealing  extensively  in 
Europe,  Asia,  Africa,  and  South  America. 

The  immense  packing  industries  of 
Armour  &  Company,  Nelson  Morris  & 
Company,  Swift  &  Company,  Cudahy  Pack- 
ing Company,  and  others,  claim  the  world 
as  their  market.  So  great  has  their  foreign 
trade  become  that  their  brands  are  known 
in  almost  every  part  of  the  civilized  world, 

20 


large  consignments  of  their  products  going 
to  supply  the  army  rations  of  every  country 
requiring  great  quantities  of  food  supplies. 

The  Elgin  Watch  Company,  known  as 
revolutionizing  the  watch  industry  of  the 
world,  is  recognized  as  a  Chicago  institu- 
tion. 

Chicago  is  also  the  acknowledged  birth- 
place and  headquarters  of  The  Pullman 
Company,  a  company  owning  and  operat- 
ing the  myriad  of  palace  cars  that  con- 
tinually traverse  the  entire  country.  This 
company  also  builds  cars  for  all  countries. 

The  establishment  of  the  McCormick 
Harvesting  Machine  Company,  in  1847,  by 
Cyrus  H.  McCormick,  for  the  purpose  of 
manufacturing  harvesting  machinery,  was 
the  first  recognition  of  Chicago  as  a  manu- 
facturing center. 

Cyrus  H.  McCormick  was  the  original 
inventor  of  the  Reaper  and  Mower,  and 
how  valuable  his  invention  was  to  Chicago, 
America,  and  the  world  is  evidenced  in  the 

21 


fact  that  it  revolutionized  agricultural  work 
everywhere,  and  won  for  him  nearly  a  score 
of  medals  for  labor-saving  machinery.  His 
name  is  known  in  every  country  where 
agriculture  is  pursued. 

The  real  estate  market  has  not  been 
idle.  Notwithstanding  the  great  depression 
of  the  past  two  years,  there  has  been  that 
steady  onward  move  in  real  estate  trans- 
actions in  keeping  with  our  commercial 
strides.  The  transfers  for  1900  are  esti- 
mated at  $87,000,000. 

Building  operations  for  this  same  year 
(1900)  were  greatly  hampered  by  a  turmoil 
in  the  labor  field ;  still,  buildings  have  been 
erected  to  the  extent,  in  value,  of  eighteen 
to  twenty  millions  of  dollars.  It  is  esti- 
mated that  there  are  building  contracts  to 
the  extent  of  $127,000,000  being  withheld 
pending  a  settlement  of  labor  troubles. 


The  Money  Side  of  the  Question. 

TH  E  immense  interchange  of  com- 
modities going  on  through  Chicago 
requires  banking  facilities  on  a  cor- 
responding scale,  and  Chicago  has  been 
peculiarly  fortunate  in  this  respect.  The 
capital  and  resources  of  the  banks  have 
steadily  kept  pace  with  the  increasing 
needs,  and  all  emergencies  have  been  met 
in  a  way  that  justifies  pride  in  the  past  and 
confidence  in  the  future  of  Chicago  as  a 
banking  center. 

A  few  years  ago  Eastern  and  European 
capital  was  behind  the  greater  number  of 
Western  businesses.  Gradually  this  has 
been  supplemented  by  Western  capital, 
earned  at  home. 

Western  farm  mortgages,  held  for  so 
many  years  by  Eastern  capitalists,  who 
were  dependent  on  them  for  income,  have 
been  and  are  being  paid  off  to  such  an 


extent  that  the  situation  is  becoming  un- 
comfortable to  those  so  dependent. 

Formerly  the  banking  transactions  with 
foreign  countries  were  done  through  East- 
ern banks,  whereas  now  the  transactions 
are  carried  on  directly  with  the  foreign 
banks,  the  principal  banks  here  having 
correspondents  in  all  the  principal  cities 
of  the  world. 

In  1897  money  was  piling  up  in  Chicago 
banks  to  such  an  extent  that  it  became  an 
incumbrance.  Interest  on  outside  balances 
was  cut  to  i  ^  per  cent,  with  the  expecta- 
tion of  diverting  the  money  to  New  York, 
where  2  per  cent  was  paid,  but,  notwith- 
standing that,  deposits  still  increased. 

In  the  past  the  East  has  been  frequently 
called  upon  to  lend  aid  to  the  West,  but 
we  are  at  last  strong  enough  to  return  the 
accommodation,  and  it  is  a  significant  fact 
that  Chicago  is  now  loaning  large  amounts 
to  New  York  City  and  the  Eastern  states. 

Western  capital,  being   based  upon  the 


products  of  the  soil,  is  not  subject  to  such 
fluctuations  as  attend  the  money  markets 
of  New  York,  London,  or  Paris,  where 
stocks  and  bonds  are  the  commodity. 
This  was  plainly  demonstrated  at  the 
time  of  the  declaration  of  war  with  Spain, 
scarcely  a  ripple  being  made  here,  whereas 
in  New  York,  London,  and  Paris  the  money 
market  was  visibly  affected. 

Every  year  has  added  and  is  adding 
resources  to  this  city  ;  and  to  the  observing 
it  is  apparent  that  Chicago  has  advanced 
so  far  in  commercial  and  financial  strength 
that  she  is  no  longer  dependent,  but  is  con- 
sidered one  of  the  reliable  factors  in  the 
financial  world. 

As  an  asset  it  may  be  interesting  to 
know  that  the  value  of  the  real  and  per- 
sonal property  of  the  city  of  Chicago, 
according  to  the  estimate  placed  upon  it 
by  the  Board  of  Assessors,  which  is  one- 
fifth  its  actual  value,  is  approximately 
$1,750,000,000. 

25 


The  Stock  Exchange. 

THE  trade  in  securities  that  heretofore 
had  been  done  over  the  counters  of 
the  banks  grew  to  such  proportions 
that  in  1882  a  Stock  Exchange  was  estab- 
lished. After  occupying  different  quarters 
in  proportion  to  its  increasing  business,  it 
moved,  in  1894,  into  permanent  quarters  in 
the  building  known  as  the  Chicago  Stock 
Exchange  Building,  where  it  occupies  an 
exchange  room  equal,  if  not  superior,  to  any 
other  in  the  country. 

A  comparison  of  the  business  at  the  open- 
ing, with  that  of  the  past  year  will  show  its 
growth. 

In  1883  57,500  shares  of  stock  and 
$9,000,000  worth  of  bonds  were  traded  in. 
In  1900  there  were  1,418,000  shares  of 
stock,  and  $8,363,000  in  bonds  traded  in. 

The  Exchange  now  ranks  next  to  Boston, 
and  third  in  the  country,  and  is  the  recog- 

26 


nized   Stock   Exchange  of  the  Mississippi 
Valley. 

The  present  officers,  to  whom  much  credit 
is  due  for  its  advancement,  are,  President, 
Alfred  L.  Baker;  Vice-president,  R.  H. 
Donnelley ;  Treasurer,  John  J.  Mitchell,  and 
Secretary,  Joseph  R.  Wilkins. 


27 


The  Board  of  Trade. 

IN  1848  Chicago  had  grown  to  a  city  of 
20,000  inhabitants,  and  its  trade  in  grain 
and  live  stock  was  growing  so  rapidly, 
and  the  trading  up  to  that  time  was  at- 
tended with  so  many  inconveniences,  that 
a  Board  of  Trade  was  organized.  Meetings 
were  held  in  rooms  at  No.  8  Dearborn 
Street  until  1854,  when  larger  quarters  were 
obtained  over  a  store  at  the  corner  of 
Wells  and  South  Water  Streets.  In  1856 
it  was  moved  twice,  the  second  time  to  the 
corner  of  LaSalle  and  South  Water  Streets. 
In  1860  still  larger  quarters  were  necessary, 
and  another  change  was  made  to  the  New- 
house  Block  in  South  Water  Street,  where 
a  more  pretentious  hall  was  fitted  up. 

By  1863  the  Board  of  Trade  had  earned 
a  high  reputation,  and  was  classed  among 
the  greatest  trading  bodies  in  the  world. 
About  this  time  a  new  charter  was  taken 

28 


out,  empowering  the  company  to  acquire 
property.  Under  this  charter  the  site 
at  the  corner  of  LaSalle  and  Washington 
Streets  was  purchased,  on  which  was  erected 
the  Chamber  of  Commerce,  which  was 
completed  in  1865.  This  was  destroyed  in 
the  fire  of  1871,  but  immediate  steps  were 
taken  to  rebuild  it.  Within  a  month  from 
the  time  of  its  destruction  the  foundation 
stone  for  the  new  structure  was  laid,  and 
within  a  year  a  still  finer  building  was  com- 
pleted, the  opening  taking  place  Oct.  8, 
1872.  For  ten  years  this  answered  the 
needs  of  the  "  Board,"  but  by  this  time  it 
had  again  outgrown  its  quarters,  so  a  site 
at  the  foot  of  LaSalle  Street  was  obtained 
and  the  present  building  was  erected. 

This  was  built  on  what  was  at  that  time 
supposed  to  be  ample  and  substantial  lines, 
but  already  there  is  prospect  of  still  an- 
other expansion. 

As  the  transactions  on  the  floor  of  the 
"  Board "  are  entirely  in  the  hands  of  its 


individual  members,  no  estimate  can  be 
made;  nor  would  it  be  representative,  were 
it  possible  to  obtain  the  actual  total  of 
these  transactions,  as  the  same  consign- 
ment may  be  bought  and  sold  several 
times.  Therefore  the  city's  total  receipts 
of  grain  and  live  stock  are  considered  more 
representative. 

As  indicative  of  the  growth  and  impor- 
tance of  the  Board  of  Trade,  and  illustrative 
of  the  point  in  question,  the  city's  advance- 
ment, we  quote  the  comparative  receipts 
for  a  few  years. 

The  total  receipts  of  grain  for  the  year 
1848  were  3,000,000  bushels,  for  1865 
54,950,000  bushels,  for  1872  88,427,000 
bushels,  for  1885  156,400,000  bushels,  and 
for  1900  372,514,000  bushels. 

The  total  receipts  of  live  stock  for  the 
year  1872  were  4,575,000  head,  for  1885 
8,900,000  head,  and  for  1900  14,967,000 
head,  valued  at  $268,600,000. 


30 


The  Merchants'  Loan  and 
Trust  Company 

Capital  and  Surplus 
$3,750,000.00 


Officers. 

Orson   Smith,  President 

E.  D.  Hulbert,    Vice-President 
J.  G.  Orchard,   Cashier 

F.  N.  Wilder,  Assistant  Cashier 

F.  G.  Nelson,  Assistant  Cashier 

Leon  L.  Loehr,  Secretary 

Directors. 

Marshall  Field  Cyrus  H.  McCormick 

Albert  Keep  J.  W.  Doane 

Lambert  Tree  A.  H.  Burley 

E.  T.  Watkins  Erskine  M.  Phelps 

Orson  Smith  Moses  J.  Wentworth 

Enos  M.  Barton  E.  D.  Hulbert 


The  Growth  of  Wealth. 

F  I  ^HE   growth   of  wealth   and  the 

J^      increasing  emergencies   that  come 

with  it,  and  which  have  to  be  met, 

have   developed  a   want    which  the  Trust 

Company  is  peculiarly  fitted  to  supply. 

It  is  of  material  advantage  to  the  man 
of  affairs  to  have  his  bank  equal  to  every 
call  he  needs  to  make  upon  it,  to  advance 
his  business  and  personal  interests. 

It  should  care  for  his  surplus  funds,  yet 
have  them  subject  to  call.  If  his  credit  is 
sufficiently  established,  his  bank  should  be 
in  position  to  furnish  him  with  additional 
funds  on  almost  as  short  notice.  If  he  has 
goods  to  buy  or  sell  in  any  part  of  the 
world,  his  bank  should  be  able  to  make  the 
transaction  a  simple  one. 

And  when  needs  of  a  more  personal 
nature  arise ;  when  it  becomes  necessary  to 
entrust  to  hands  other  than  his  own  the 


immediate  personal  affairs  of  his  life,  it  is 
much  better  that  his  affairs  should  be  in 
charge  of  a  bank  that  is  capable  of  assum- 
ing such  trusts,  than  to  be  obliged  to  call 
on  a  friend  or  to  place  his  matters  in  the 
hands  of  those  unfamiliar  with  his  affairs. 

The  execution  of  a  man's  will  after  death, 
the  safeguarding  of  his  property  for  minors 
or  for  those  inexperienced  in  business 
affairs,  the  handling  of  delicate  and  im- 
portant transactions  that  should  be  in  safe 
and  disinterested  hands ;  or,  should  misfor- 
tune overtake  him  and  he  desire  that  an 
honest  division  of  his  property  be  made 
among  his  creditors — all  these  matters  are 
more  safely  and  more  satisfactorily  cared 
for  by  his  bank,  provided  the  bank  is  of  a 
character  to  assume  the  duties.  It  is  in 
these  several  capacities  the  "Trust  Com- 
pany" is  designed  and  prepared  to  act. 

It  brings  to  the  execution  of  trusts  not 
only  unquestioned  responsibility,  efficiency, 
and  fidelity  but  freedom  from  the  vicissi- 

34 


tudes  and  uncertainties  of  life,  to  which  the 
personal  trustee  is  always  subject. 

The  advantages  of  Trust  Companies  are 
so  evident  that  it  is  becoming  more  and 
more  common  for  people  of  means  to  turn 
over  certain  of  their  business  affairs  to 
them,  that  they  may  devote  their  time  to 
more  pressing  or  more  congenial  matters. 

The  Merchants'  Loan  and  Trust  Com- 
pany is  incorporated  under  the  laws  of  the 
state  of  Illinois,  transacts  a  general  banking 
and  trust  business,  and  acts  in  all  the 
capacities  mentioned. 


The  Merchants'  Loan  and  Trust 
Building. 

TH  E  increasing  demands  of  business 
in  recent  years  necessitated  larger 
and  more  convenient  quarters. 

To  meet  these  requirements  and  a  gen- 
eral patronage,  we  selected  a  site  in  the 
heart  of  Chicago's  business  center,  in  close 
proximity  to  the  retail  houses,  the  Board 
of  Trade,  the  Stock  Exchange,  the  new 
Post-office  and  Custom  House,  and  the 
large  office  buildings  wherein  is  transacted 
the  business  of  outlying  factories  and 
plants. 

The  building  is  a  twelve-story  office 
structure  erected  for  the  bank  by  Mr. 
Marshall  Field,  and  is  as  complete  as 
modern  architecture  can  make  it. 

The  banking  room  is  thoroughly  equip- 
ped with  the  most  modern  bank  appoint- 
ments and  with  ample  space  to  carry  on 

36 


an  extensive  banking  business  with  the 
utmost  expedition  and  greatest  conven- 
ience to  customers. 

In  the  basement,  and  connected  directly 
with  the  banking  room  by  a  special  elevator, 
are  safe  deposit  vaults  furnishing  absolute 
protection,  being  provided  with  all  the  safe- 
guards that  the  science  of  modern  vault 
construction  and  electrical  development 
affords. 

The  vaults  are  equipped  with  every  con- 
venience—  telephone,  telegraph  and  mes- 
senger call,  coupon  and  committee  rooms, 
ladies  parlors,  etc. — practically  nothing  is 
lacking  that  helps  the  transaction  of  busi- 
ness or  furnishes  personal  comfort  in  trans- 
acting it. 


37 


Banking  Department. 

THIS  department  is  thoroughly  equip- 
ped for  handling  accounts  of  every 
nature  appropriate  to  banking  busi- 
ness. The  extensive  facilities  of  this  Com- 
pany enable  it  to  meet  the  monetary  needs 
of  individuals,  firms,  corporations,  and 
banks. 

Every  accommodation  is  afforded  cus- 
tomers that  will  contribute  to  the  promo- 
tion of  their  business  interests  with  ease 
and  convenience.  Loans  are  made  for  all 
legitimate  business  purposes. 

Interest  is  paid  on  accounts  of  a  nature 
to  justify  it. 

Time  and  demand  certificates  of  deposit 
having  special  rates  of  interest  are  issued. 

The  Company's  extensive  connections 
enable  it  to  effect  collections,  either  in 
the  city  or  throughout  the  country,  with 
promptness. 

38 


The  comprehensive  character  of  this 
bank's  business  enables  it  to  act  as  cor- 
respondent to  out-of-town  banks  and  bank- 
ers in  such  a  manner  as  to  meet  every  re- 
quirement of  such  patrons  and  to  augment 
their  business  when  possible. 


39 


Foreign  Department. 

THIS  department  issues  drafts  and 
money  orders,  and  makes  cable 
transfers  on  all  points  throughout 
the  world.  It  buys  and  sells  bills  of 
exchange  on  foreign  countries. 

It  issues  commercial  letters  of  credit,  by 
which  means  business  may  be  transacted  in 
any  foreign  country  with  the  same  conven- 
ience as  at  home. 

Arrangements  are  made  by  which  banks 
and  bankers  throughout  the  United  States 
can  make  drafts  direct  on  our  correspond- 
ents abroad.  Drafts  for  the  purpose,  and 
rates  for  which  drafts  are  to  be  drawn,  are 
furnished. 

Collections  on  foreign  countries  are 
received  and  forwarded,  as  are  the  returns 
from  accounts  received  from  foreign  banks 
for.  collection  on  any  point  in  the  United 
States. 

40 


Travelers  visiting  Great  Britain  and 
Europe  can  obtain  through  this  department 
letters  of  credit  in  "pounds  sterling.,"  and 
can  make  drafts  on  our  London  correspond- 
ents from  time  to  time,  as  needs  may  require, 
obtaining  funds  in  the  currency  of  the  coun- 
try in  which  they  may  be  traveling. 

Travelers  in  the  United  States,  South 
America,  Mexico,  West  Indies,  Canada, 
China,  Japan,  Hawaiian  Islands,  Cuba, 
Porto  Rico,  and  Alaska  (direct  connec- 
tion with  Dawson  City  and  Atlin)  will 
find  our  "  dollar  credits  "  of  great  conven- 
ience. 

This  bank  acts  as  agent  for  foreign  banks 
in  all  the  various  capacities  of  a  bank  and 
trust  company. 

Foreign  coins  and  paper  are  bought  and 
sold. 


41 


Bond  Department. 

THE  bond  department  of  this  bank 
carries  a  diversified  line  of  high- 
grade  investments,  comprising  gov- 
ernment, municipal,  railroad,  and  corpora- 
tion bonds. 

Government  bonds  are  bought  and  sold 
in  accordance  with  market  quotations,  and 
a  moderate  supply  is  kept  on  hand.  Prep- 
aration is  made,  however,  to  fill  large  orders 
on  short  notice. 

Other  classes  of  bonds  that  are  offered 
within  the  range  of  safe  investment  afford 
investors  an  opportunity  to  make  a  selection 
appropriate  to  the  purpose. 

While  this  bank  does  not  guarantee  secu- 
rities of  any  kind,  those  offered  are  only 
such  as  the  bank  itself  is  willing  to  hold 
for  its  own  investment. 

In  repurchasing  bonds  the  fairest  treat- 
ment is  assured. 

42 


Stocks  and  bonds  listed  on  the  various 
stock  exchanges,  and  not  dealt  in  by  us, 
may  be  purchased  through  this  bank. 

Out  of  town  banks  and  bankers,  whether 
correspondents  of  this  bank  or  not,  will 
find  it  an  advantage  to  avail  themselves  of 
the  opportunities  that  this  department 
presents. 

Executors  and  administrators  of  estates 
receive  special  attention.  Appraisement 
is  made  of  stocks  and  bonds  when  desired. 

Women,  and  those  unfamiliar  with  mak- 
ing investments,  can  entrust  such  matters 
to  the  care  of  this  bank  with  safety  and 
profit. 


Trust  Department. 

/"  I  AHE  Merchants'  Loan  and  Trust 
'  Company  is  authorized  by  the  laws  of 
the  State  of  Illinois  to  accept  and 
execute  all  kinds  of  trusts.  It  has  depos- 
ited security  with  the  Auditor  of  Public 
Accounts  of  the  State  of  Illinois  for  the 
faithful  performance  of  its  duties.  It  is 
required  by  law  to  make  regular  statements 
to  the  Auditor,  and  is  subject  to  examina- 
tion by  the  Auditor  and  to  the  supervision 
of  the  courts. 

It  gives  to  the  administration  of  trust 
business  the  care,  ability,  and  sound  judg- 
ment not  of  one  man  alone,  but  of  a  number 
of  experienced,  prudent,  and  successful 
men. 

This  company  affords  special  facilities 
for  the  organization  and  reorganization  of 
corporate  enterprises;  it  holds  property 
and  evidences  of  title  while  sales  and  trans- 

44 


fers  are  being  consummated ;  it  acts  as 
registrar  and  transfer  agent,  and  as  trustee 
and  agent  for  corporations  in  all  matters 
pertaining  to  the  issue  and  transfer  of 
stocks  and  bonds  and  the  payment  of  divi- 
dends and  interest;  it  acts  as  receiver, 
assignee  and  custodian,  and  gives  assistance 
in  the  foreclosure  and  refunding  of  mort- 
gage indebtednesses  and  in  the  conversion 
and  distribution  of  assets  of  corporations, 
firms,  and  individuals  going  out  of  business. 

It  acts  as  executor,  administrator,  trustee 
under  wills  or  declarations  of  trust,  guar- 
dian, conservator,  or  agent  for  the  invest- 
ment, care,  and  management  of  estates  and 
property. 

Wills  and  other  instruments  under  which 
this  company  is  to  act  in  a  fiduciary  capac- 
ity are  drawn,  modified,  or  examined  by  the 
company's  attorney  free  of  charge.  In 
these  matters  the  advice  of  a  lawyer  who 
makes  a  specialty  of  such  business  is  of 
great  value. 


The  company  manages  property  for  non- 
residents, for  persons  going  abroad,  and  for 
those  who,  for  any  reason,  wish  to  be 
relieved  of  the  care  of  their  property,  tem- 
porarily or  otherwise. 

It  receives  gifts  in  trust  for  persons  and 
for  charitable  and  educational  institutions, 
and  it  accepts  revocable  and  conditional 
transfers  and  conveyances  for  others. 

In  short,  it  is  prepared  to  administer  any 
and  all  kinds  of  trusts. 


46 


Safe  Deposit  Department. 

THIS  department  affords  the  utmost 
security  and  convenience  to  corpora- 
tions, bankers,  firms,  and  individuals 
desiring  safe  deposit  accommodations. 

Valuables  of  all  kinds,  coupons,  bonds, 
certificates  of  stock,  deeds,  mortgages,  plate, 
jewelry,  etc.,  are  received  for  safekeeping, 
under  the  company's  guarantee  for  security. 

Safes  within  the  special  section  are  of 
various  sizes  to  accommodate  the  different 
requirements.  We  have  also  special  vaults 
for  the  storage  of  trunks  and  packages 
containing  valuable  materials. 

Directors',  committee,  and  private  rooms 
are  at  the  disposal  of  customers,  and  there 
is  a  special  department  for  ladies. 


47 


Statement. 

Report  of  the  Condition  of 

The  Merchants'  Loan  and  Trust  Company 

of  Chicago 

Made  to  its    Stockholders   at  the 
Close  of  Business  December  31,  1900 

RESOURCES 
Loans  and  Discounts        ....   $16,058,478.62 

United  States  Bonds 28,480.00 

Other  Bonds  and  Stocks  .  .  .  1,498,516.57 
Due  from  Banks  and  Bankers  .  .  6,323,478.82 
Cash  and  Checks  for  Clearing  House,  4,985,022.06 


$28,893,976.07 

LIABILITIES 

Capital  Stock $  2,000,000.00 

Surplus  Fund i,coo,ooo.oo 

Undivided  Profits       ...      .      .      .  803,669.00 

Dividends  Unpaid       .....  60,000.00 

Deposits     ....            ...  25,030,307.07 

$28,893,976.07 
48 


For  comparison  the  following  statement 
may  be  of  interest : 

Report  of  the  Condition  of 

The  Merchants'  Loan  and  Trust  Company 
of  Chicago 

Made  to   its   Stockholders  at   the 
Close  of  Business  December  31,  1880 

RESOURCES 

Loans  and  Discounts $4,856,198.28 

United  States  Bor.ds   .....         809,200.00 
Other  Bonds  and  Stocks    ....         445,000.00 

Real  Estate 32,913.68 

Due  from  Banks  and  Bankers      .      .         175,131.98 
Cash  and  Checks  for  Clearing  House,    1,929,523.30 

#8,247,967.24 

LIABILITIES 

Capital  Stock     .......  #1,500,000.00 

Surplus  Fund     .,..,.,  100,000.00 

Undivided  Profits 730,181.59 

Dividends  Unpaid 51,374.00 

Deposits 5,866,411.65 

#8,247,967  24 
49 


In  1857  the  capital  of  this  bank  was 
half  a  million  dollars.  From  time  to  time, 
as  the  requirements  demanded,  this  was 
increased  until  today  it  is  two  million, 
which,  with  the  surplus,  amounts  to  $3,750,- 
ooo.oo. 

The  position  the  bank  occupies  in  regard 
to  deposits  is  somewhat  unique.  It  receives 
no  savings  deposits,  has  no  deposits  of 
public  funds,  and  but  a  small  portion  of  its 
deposits  are  from  country  banks.  Hence, 
the  greater  part  of  its  deposit  liability  rep- 
resents active  commercial  and  corporation 
accounts  of  city  concerns. 


50 


Stockholders. 

Arnold,  Katherine  D.,  Trustee,       Chicago. 
Adams,  Mrs.  Adele  F.,  Chicago. 

Addoms,  Mary  B.,  New  York  City. 

Armour,  George  A.,  New  York  City. 

Armour,  Allison  V.,  New  York  City. 

Armour,  Mrs.  May  E.,  Chicago. 

Allerton,  Robert  H.,  Chicago. 

Baker,  Susan  B.,         South  Duxbury,  Mass. 
Ballard,  Lucy  B.,  Pittsfield,  Mass. 

Baldwin,  Henry  S.,    South  Duxbury,  Mass. 
Baldwin,  John,  New  York  City. 

Baldwin,  Frederick  H.,         New  York  City. 
Bareiss,  Mrs.  Hattie,  Chicago. 

Barton,  Enos  M.,  Chicago. 

Batterson,  J.  G.,  Trustee,    Hartford,  Conn. 
Belden,  Caroline  B.,  Hartford,  Conn. 

Blaine,  Mrs.  Anita  McCormick,      Chicago. 
Blair,  Mary  F.,  Chicago. 

Blair,  Chauncey  J.  Chicago. 

Blair,  Henry  A.,  Chicago. 

51 


.  OF  ILL  LIB. 


Blair,  Watson  F., 
Blackman,  Walter, 
Blackman,  Mrs.  Clara  M., 
Beach,  Miss  Helen, 
Beach,  Mary  B.,  Trustee, 
Beecher,  Mrs.  Mary, 
Bentley,  Cyrus,  Trustee, 
Bennett,  Estate  of  W.  W., 
Blodget,  Harriet  I., 
Boal,  Chas.  T., 
Borland,  Harriet  B., 
Bowen,  Mrs.  Roxana  A 


Brewster,  E.  L.  &  Co., 
Bronson,  Frederic, 
Brooks,  Melissa  M., 
Burley,  A.  H., 
Burley,  Clarence  A., 
Carter,  Ernest, 


Chicago. 

Chicago. 

Chicago. 
New  York  City. 
Hartford,  Conn. 

Chicago. 

Chicago. 
Rockford,  111. 

Chicago. 

Chicago. 

Chicago. 
Wentworth, 

New  York  City. 

Chicago. 
New  York  City. 

Chicago. 

Chicago. 

Chicago. 
New  York  City. 


Carter,  Leslie,  Trustee  Estate  Jas. 

Carter,  Chicago. 

Clark,  John  Biddle,  Brooklyn,  N.  Y. 

Clark,  Lincoln  E.,  Chicago. 


52 


Clarke,  M.  Annette  F.,          Kirkwood,  Mo. 
Clarke,  Wm.  B.,  Trustee  for  Sarah  W. 

Stevens,  Hartford,  Conn. 

Cooley,  Francis  B.,  Hartford,  Conn. 

Cook,  Alexander  Nichols,  New  York  City. 
Collins,  Harrie  B.,  Chicago. 

Collins,  Wm.  R.,  Chicago. 

Cobb,  S.  B.,  Estate  of  Chicago. 

Cushman,  Estate  of  Henry  W., 

Greenfield,  Mass. 

De  Koven,  Mrs.  Annie  L.,  Chicago. 

De  Koven,  Estate  of  John,  Chicago. 

Debevoise,  Anne  W.,  New  York  City. 

Deere,  C.  H.,  Moline,  111. 

Deming,  Frederick,  Litchfield,  Conn. 

Dodd,  Anna  B.,  and  W.  L.  Clark,  as 

Executrix  and  Executor  of  Elizabeth 

A.  Blake,  deceased,          New  York  City. 
Doane,  John  W.,  Chicago. 

Drake,  Helen  V.,  Chicago. 

Duane  Lodge  No.  n,  I.  O.  O.  F.,  Chicago. 
Farnam,  Wm.  W.,  Chas.  H.,  and  Henry 

W.,  trustees,  New  Haven,  Conn. 

53 


Farnam,  Mrs.  Ann  S.,     New  Haven,  Conn. 

Farnam,  Carolina  Wells,  and  Wm.  W., 
Trustees  under  the  will  of  George 
Bronson  Farnam,  New  Haven,  Conn. 

Farnam,  Charles  H.,       New  Haven,  Conn. 

Farnam,  Henry  Walcott,  New  Haven,  Conn. 

Farnam,  Henry,  New  Haven,  Conn. 

Farnam,  William  Whitman, 

New  Haven,  Conn. 

Field,  Marshall,  Chicago. 

Field,  Marshall,  Jr.,  Chicago. 

Foster,  Mrs.  Nancy  S.,  Chicago. 

Foote,  John  J.,  Belvidere,  111. 

Foote,  Harriet,  Belvidere,  111. 

Foote,  John  Crocker,  Belvidere,  111. 

Foote,  Helen  G.,  Belvidere,  111. 

Greenough,  Jane  A.  B.,       Westfield,  Mass. 

Goodrich,  Horace  A.,  Juliet  Goodrich, 
and  Mary  F.  Magwire,  Trustees,  Chicago. 

Goodridge,  Charlotte  M.,     New  York  City. 

Goodwin,  Francis,  Hartford,  Conn. 

Goodwin,  James  J.,  Hartford,  Conn. 

Hardy,  Elizabeth  B.,  Boston,  Mass. 

54 


Harmon,  H.  Louise,  Auburn,  N.  Y. 

Harmon,  Lilian,  Chicago. 

Hawes,  Kirk,  Chicago. 

Hibbard,  William  G.,  Chicago. 

Holmes  &  Gay,  Trustees, 

West  Winsted,  Conn. 

Holt,  D.  R.,  Estate  of,  Chicago. 

Holt,  Ellen  M.,  Chicago. 

Holt,  Charles  S.,  Chicago. 

Howe,  George  S.,  Hartford,  Conn. 

Howe,  Daniel  R.,  Hartford,  Conn. 

Hulbert,  E.  D.,  Chicago. 

Hunnewell,  Hollis  Horatio,  Boston,  Mass. 
Illinois  Trust  &  Savings  Bank,  Trustee 

for  Florence  Sanger,  Chicago. 

Illinois  Trust  &  Savings  Bank, 

Trustee  for  Clara  Pullman,          Chicago. 
Isham,  Ralph  N.,  Chicago. 

Johnson,  Emily  M.,  Ft.  Smith,  Ark. 

Johnson,  Mary  Beach,  Andover,  Mass. 

Keney,  Henry,  Estate  of,  Hartford,  Conn. 
Kellogg,  Anna  S.,  Williamstown,  Mass. 
Kellogg,  Emma  C.,  Chicago. 

55 


Kellogg,  Sarah  H.,  Chicago. 

Keep,  Albert,  Chicago. 

King,  James  C.,  Chicago. 

Knowles,  Howard,  Galesburg,  111. 

Laflin,  George  H.,  Chicago. 

Law,  Robert  H.,  Chicago. 

Lawson,  Victor  F.,  Administrator,  Chicago. 
Latting,  Mrs.  Isabella  W.  C.,  Chicago. 

Leicht,  Andrew  E.,  Chicago. 

Lefens,  Marie,  Chicago. 

Mackin,  John,  Chicago. 

Madlener,  Mrs.  Elsa,  Chicago. 

Mather,  Roland,  John   B.  Bunce,  and 

D.  Hillyer,  Trustees  for  heirs  of  Ira 

Peck,  Hartford,  Conn. 

Mather,  Roland,   and  J.  R.  Redfield, 

Trustees  of  Estate  of  E.  G.  Howe, 

Hartford,  Conn. 

Mathews,  Frank  S.,  New  York  City. 

Macy,  Estate  of  Sarah  L.,     New  York  City. 
McArthur,  Warren,  Chicago. 

McCoon,  Catherine  Adelia,  Extx.,  and 

James  H.   McCoon,   Ex'r  of  Estate 
Cornelius  McCoon,  dec'd, 

New  York  City. 

56 


McCormick,  Mrs.  Nettie  F.,  Chicago. 

McCormick,  Cyrus  H.,  Chicago. 

McCormick,  Harold  F.,  Chicago, 

McCormick,  Nettie  F.,  Eldridge  M. 
Fowler  and  Cyrus  H.  McCormick, 
Jr.,  Trustees  for  Mary  V.  McCor- 
mick, Chicago. 

McCormick,  Nettie  F.  and  Cyrus  H., 
Jr.,  Trustees  for  Stanley  R.  McCor- 
mick, Chicago. 

McCrea,  Reinette  M.,  Chicago. 

McWilliams,  LaFayette,  Chicago. 

McKindley,  Effie  Gertrude,  Chicago. 

Merchants'  Loan  &  Trust  Company, 

Trustee  for  Frank  G.  Logan,       Chicago. 

Michigan  Trust  Company,  Trustee 
for  Mary  G.  Learned, 

Grand  Rapids,  Mich. 

Munn,  Mrs.  C.  L.,  Chicago. 

Munger,  Estate  of  Albert  A.,  Chicago. 

Nash,  Mrs.  Lydia  J.,  Chicago. 

Newberry  Library,  The,  Chicago. 

Newberry,  Walter  Cass,  Guardian 

for  Margaret  A.  Newberry,          Chicago. 

57 


Newberry,  Fannie  E.,  Romeo,  Mich. 

Otis,  Lucius  B.,  Chicago. 

Parkin,  Minnie  P.,  Romeo,  Mich. 

Parsons,  John  C.,  John  R.  Redfield 

and  Francis  B.  Cooley,  Trustees 

under  the  will  of  Edward  H. 


Perkins, 

Pearsons,  Daniel  K., 
Peck,  Kate  T., 
Peck,  Cornelia  C., 
Peck,  Mrs.  Harriet  M., 
Perkins,  Edward  C., 
Perkins,  Henry  A., 
Perkins,  Mabel  H., 
Phelps,  Erskine  M., 
Porter,  Julia  F., 
Porter,  James  W., 
Porter,  Edwards  H., 
Porter,  Ruth  W., 
Porter,  Henry  D., 
Porter,  Mary  H., 
Porter,  Henrietta, 
Portman,  Emma  C., 


Hartford,  Conn. 

Chicago. 

Chicago. 
Hartford,  Conn. 
Shortsville,  N.  Y. 
Hartford,  Conn. 
Hartford,  Conn. 
Hartford,  Conn. 

Chicago. 

Chicago. 

Chicago. 

Chicago. 

Chicago. 

Chicago. 

Chicago. 
New  York  City. 

Chicago. 


58 


Pullman,  Hattie  Sanger,  Chicago. 

Ray,  Julia  A.,  Chicago. 

Raymond,  George  L.,       Washington,  D.  C. 
Richards,  Louise  C.,  Chicago. 

Rogers,  Susan  C.,  Chicago. 

Rogers,  Virginia  B.,  and  Daniel  R. 

Kendall,  surviving  Trustees  for 

the  Estate  of  John  L.  Rogers, 

New  York. 

Sanderson,  Maria  C.,      Bernardston,  Mass. 
Sorchan,  Charlotte  B.  W.,  Boston. 

Starr,  Dr.  M.  Allen,  New  York. 

Stevens,  Frank  L.,  Chicago. 

Seipp,  Mrs.  Catharina,  Chicago. 

Seipp,  Mrs.  Catharina,  Guardian  for 

Conrad  Seipp,  Chicago. 

Seipp,  Alma,  Chicago. 

Schmidt,  Mrs.  Emma,  Chicago. 

Shaw,  Theo.  A.,  Jr.,  Chicago. 

Smith,  Orson,  Chicago. 

Smith,  W.  Treese,  Chicago. 

Scudder,  Mary,  Chicago. 

Straus,  Simon  W.,  Chicago. 

59 


Towne,  Bertha  L.,  Hartford,  Conn. 

Tree,  Mrs.  Anna  J.,  Chicago. 

Tree,  Mrs.  Ethel  Field,  Chicago. 

Tree,  Lambert,  Chicago. 

Talman,  Mrs.  Alice  Denison, 

Globeville,  Colo. 

Turner,  Mrs.  Julia  M.,  Philadelphia. 

Tyrrell,  John,  Chicago. 

Valentine,  Eliza  W.,  New  York  City. 

Van  Meenen,  Josephine  E.,  Chicago. 

Ward,  Mrs.  Mary  A.,  Chicago. 

Ware,  Mrs.  Elizabeth  A.,  Chicago. 

Watkins,  Mrs.  Amanda  A.,  Chicago. 

Watkins,  E.  T.,  Chicago. 

Webster,  Wm.  R.,  Brooklyn,  N.  Y. 

Wentworth,  Moses  J.,  Trustee,        Chicago. 

Wentworth,  Moses  Jones,  Chicago. 

Whitehouse,  Mrs.  Mary  Armour. 

New  York  City. 

Winthrop,  Edgerton  L.,  J.  Sergeant 
Cram  and  Bronson  Winthrop, 
Guardians  for  Charlotte  A.  W.  Cram, 

New  York  City. 

60 


Winthrop,  Bronson,  New  York  City. 

Winthrop,  Edgerton  L.,  Jr., 

New  York  City. 

Whitney,  Sarah  S.,          New  Haven,  Conn. 
Wood,  Frances  P.,  Hartford,  Conn. 

Worthington,  Mary,  Administratrix, 

Cooperstown,  N.  Y. 
Yoe,  Catharine  A.,  Chicago. 


•51 


A  Bit  of  History 


This  being  the  oldest  bank  in  the  city 
as  well  as  the  State,  and  consequently  an 
important  factor  in  the  city's  financial  ad- 
vancement, it  is  permissible  that  we  devote 
a  part  of  the  space  to  the  bank's  indi- 
vidual history. 


65 


Advertisement  of  1857 

The  Merchants'  Savings,  Loan 
and  Trust  Company 


Having  a  capital  of  $500,0x30  (with  the  privilege  of  increasing 
the  same  to  #2,000,000)  fully  paid  in,  this  bank,  according  to  the 
provisions  of  its  Charter,  is  prepared  to  buy  and  sell  exchange 
on  all  the  principal  cities  of  the  United  States  and  to  discount 
satisfactory  business  paper  of  short  date.  The  Executive  Com- 
mittee will  meet  dailyat  ten  o'clock  a. in., and  persons  applying 
for  discounts  will  receive  answers  at  one  o'clock  p.  m. 

We  receive  money  for  accumulation,  allowing  compound 
interest  at  seven  per  cent  per  annum  when  the  amount  is  depos- 
ited for  a  term  of  years  ;  we  also  receive  and  execute  trusts  by 
order  of  courts,  from  estates,  corparations  and  individuals; 
and  also  collect  notes,  drafts  and  acceptances  payable  in  this 
city,  and  remit  for  same  at  current  rates  of  exchange  at 
maturity,  and  will  make  collection  upon  other  points  upon 
favorable  terms.  Office  corner  La  Salle  and  Water  Streets. 

TRUSTEES. 

M.  D.  Ogden,  W.  A.  Doggett, 

Jonathan  Burr,  George  Steele, 

F.  B.  Cooley,  Henry  Farnam, 

John  H.  Foster,  J.  H.  Dunham, 

W.  L.  Newberry,  A.  H.  Burley, 

D.  R.  Holt,  I.  N.  Arnold. 

J.  H.  Dunham,  President. 

Jonathan  Burr,  Vice- President. 
D.  R.Holt.  Cashier  and  Secretary. 

66 


A  Bit  of  History 

TH  E  Merchants'  Loan  and  Trust 
Company  Bank  started  business  in 
Chicago  in  the  year  1857,  about  the 
time  when  the  city  first  began  to  attract 
attention.  Its  incorporators  were  Win.  B. 
Odgen,  F.  B.  Cooley,  N.  P.  Wilder,  Henry 
Farnam,  Samuel  P.  Officer,  John  High,  Jr., 
Erastus  S.  Williams,  Henry  W.  Hinsdale, 
John  W.  Stanley,  John  P.  Babcock,  Charles 
Hitchcock,  D.  R.  Holt  and  R.  W.  Officer. 

The  presidents  and  their  terms  of  office 
succeeded  in  the  following  order : — 

Mr.  J.  H.  Dunham,  from  the  time  of  the 
incorporation  of  the  bank,  in  1857,  until 
the  spring  of  1862  ;  Henry  Farnam,  from 
the  spring  of  1862  to  1863  ;  Solomon  A. 
Smith,  from  1863  until  the  time  of  his 
death,  in  1879.  John  Tyrrell  acted  as 
president  after  the  death  of  Solomon  A. 
Smith  until  his  regular  election  as  presi- 

67 


dent,  in  1881,  and  then  served  in  that 
office  until  1884.  J.  W.  Doane  was  presi- 
dent from  1884  to  1898,  and  Orson  Smith, 
the  present  incumbent,  has  served  since 
1898. 

The  vice-presidents  and  their  terms  of 
office  succeeded  in  the  following  order:  — 

John  High,  Jr.,  from  June,  1857,  until 
the  fall  of  the  same  year  (Walter  New- 
berry  acted  as  vice-president  to  fill  out  Mr. 
High's  unexpired  term  from  the  fall  of  1857 
over  into  the  year  1858);  Jonathan  Burr 
from  1858  until  the  spring  of  1860  ;  H.  H. 
Magie  from  the  spring  of  1860  until  the 
spring  of  1862  ;  Solomon  A.  Smith  from 
the  spring  of  1862  to  the  spring  of  1863  ; 
W.  E.  Doggett  from  1863  until  1877  ; 
John  Tyrrell  from  1877  until  1881  ;  Byron 
L.  Smith  from  1881  until  1885  ;  P.  L. 
Yoe  from  1885  until  1892  ;  Orson  Smith 
from  1892  until  1898;  E.  D.  Hulbert,  the 
present  vice-president,  since  1898. 

The  men  who  have  acted  in  the  capacity 

68 


WILLIAM    B.  OGDEN 


of  cashier  and  their  respective  terms  of 
office  are  as  follows: 

A.  J.  Hammond,  from  the  opening  of 
the  bank  until  November,  1857 ;  M.  B. 
Bartlett  from  November,  1857,  until 
June,  1858;  D.  R.  Holt  from  June,  1858, 
until  1862  ;  Lyman  J.  Gage  from  1862  until 
1868;  Charles  Henrotin  from  1868  until 
1878;  H.  E.  Lowe  from  1878  until  1884; 
F.  C.  Osborne  from  1884  until  1895  ; 
J.  G.  Orchard,  the  present  cashier,  since 
1895. 

The  location  of  the  Merchants'  Loan 
and  Trust  Company  Bank  was  changed 
from  time  to  time  to  conform  to  the  busi- 
ness center  of  the  city.  Its  first  location 
was  at  the  corner  of  South  Water  and 
La  Salle  streets,  under  the  Board  of  Trade 
rooms.  It  continued  in  business  there 
until  the  spring  of  1860,  when  it  removed 
into  the  Dickey  Building,  at  the  southwest 
corner  of  Lake  and  Dearborn  streets,  where 
it  remained  until  the  fire  of  October  9, 

70 


WALTER    L.  NEWBERRY 


71 


1871.  Immediately  after  the  fire  tempo- 
rary quarters  were  occupied  in  Solomon  A. 
Smith's  house,  on  Wabash  avenue,  below 
Harrison  street.  Here  the  bank  remained 
until  the  completion  of  the  Manierre  Build- 
ing, at  the  corner  of  Madison  and  Dearborn 
streets,  into  which  it  removed  in  the  spring 
of  1872.  Requiring  larger  quarters,  it 
moved,  in  1881,  to  the  Portland  Block,  at 
the  corner  of  Washington  and  Dearborn 
streets,  where  it  remained  until  1900,  when 
it  removed,  as  stated  elsewhere,  into  its 
present  location. 

From  the  start  the  policy  of  the  bank  has 
been  based  on  the  more  substantial  prin- 
ciples, and  by  adhering  strictly  to  those  lines 
for  nearly  half  a  century,  it  has  steadily  ad- 
vanced and  has  successfully  coped  with  al- 
most every  calamity  known  to  banking  ex- 
perience, although  hundreds  of  banks  have 
been  swept  out  of  existence. 

Incidents  in  the  bank's  history  have 
been  told  many  times,  but  the  account  that 

72 


HENRY    FARNAM 


73 


appeared  in  the  Chicago  daily  papers,  and 
which  we  herewith  reprint,  will  give  the 
reader,  who  is  interested,  some  idea  of  the 
vicissitudes  through  which  The  Merchants' 
Loan  and  Trust  Company  once  labored. 


J.  H.  DUNHAM 


75 


Chicago's  Oldest  Bank 

Sketch  of  the  Merchants'  Loan  and  Trust  Company 

from  the  City's  Early  Days  to  the  Present  Time 

—The  Trying  Period  of  Wildcat  Currency 

— How  its  Officers  Saved  its  Treasure 

in  the  Great  Fire  —  A  Training 

School  for   Bankers 

NO  Chicago  institution  can  be  more 
justly  called  a  representative  one, 
or  is  more  closely  identified  with 
the  city's  financial  prosperity,  than  the 
Merchants'  Loan  and  Trust  Company. 
It  is  the  oldest  banking  institution  in  the 
state  of  Illinois.  Organized  in  1857,  at  a 
time  when  the  monetary  circulation  of  the 
Northwest  consisted  mainly  of  "  wildcat " 
currency  of  various  degrees  of  worthless- 
ness,  and  experiencing  at  least  twice  in 
subsequent  years  disasters  which  proved 
•financial  maelstroms  to  hundreds  of  less 
fortunate  organizations,  it  has,  during  its 
forty-three  years  of  busy  existence,  success- 

76 


D.  R.  HOLT 


77 


fully  coped  with  almost  every  variety   of 
calamity  known  in  the  annals  of  banking. 

The  bank's  doors  were  thrown  open  for 
business  in  May,  1857,  on  the  first  floor  of 
the  old  Board  of  Trade  building,  at  the 
northwest  corner  of  Water  and  La  Salle 
streets.  The  second  story  was  occupied 
by  the  Board  of  Trade.  The  state  charter, 
which  had  been  procured  through  the 
efforts  of  John  H.  Dunham  the  previous 
autumn,  fixed  the  capital  stock  at  $500,- 
ooo.  This  amount  has  since  been  in- 
creased by  degrees  to  $2,000,000,  which 
is  the  limit  allowed  in  the  original  charter. 
Mr.  Dunham  was  the  first  president,  and 
A.  J.  Hammond  came  out  from  Connecti 
cut  to  officiate  as  cashier.  Chicago  was 
not  altogether  as  charming  a  place  to  live 
in  the  winter  of  1857  as  it  is  now,  and 
Mr.  Hammond  soon  returned  to  his  native 
heath. 

Mr.  Holt,  who  had  been  cashier  since 
June,  1858,  resigned  in  1862  to  again  enter 

78 


CHARLES   HITCHCOCK 


Tit 


into  active  mercantile  life.  He  was  suc- 
ceeded by  Lyman  J.  Gage,  who  had  re- 
signed a  position  as  night  watchman  in  a 
sash  and  door  factory  a  few  years  before 
to  take  a  bookkeeper's  desk  in  the  bank. 

Solomon  A.  Smith  was  about  this  time 
elected  president,  discharging  the  duties  of 
that  office  until  his  death,  in  1879. 

Charles  Henrotin,  who  followed  Mr. 
Gage,  was  cashier  through  two  calamitous 
periods — the  great  fire  of  1871  and  the 
panic  two  years  later. 

The  thirteen  original  trustees  were  Isaac 
N.  Arnold,  W.  E.  Doggett,  D.  R.  Holt,  Wm. 
B.  Ogden,  John  H.  Foster,  Walter  L.  New- 
berry,  Henry  Farnam,  Jonathan  Burr, 
George  Steele,  J.  H.  Dunham,  F.  B.  Cooley, 
A.  H.  Burley  and  John  High  —  names  which 
now  must  awaken  a  host  of  recollections  for 
the  Chicago  resident  of  ante-bellum  days. 

A  coherent  account  of  the  old  "  wildcat " 
or  "  stumptail "  currency  troubles,  in  their 
relation  to  the  history  of  this  bank  from 


H.  H.  MAGIE 


1857  to  1862,  would  fill  a  volume.  It  can, 
however,  at  least  be  said  that  the  Mer- 
chants' Loan  and  Trust  Company  was 
from  the  start  a  pronounced  and  unyielding 
advocate  of  the  expulsion  of  the  irrespon- 
sible system  of  banking  which  ultimately 
flooded  the  country  with  so  much  irre- 
deemable currency.  And,  inasmuch  as  the 
trustees  possessed  the  courage  to  shape  the 
practical  policy  and  methods  of  the  bank 
in  accordance  with  their  convictions,  they 
made  enemies,  naturally.  Their  path  was 
at  times  anything  but  one  of  roses.  It  is 
said  that  more  than  once  bitter  and  deter- 
mined efforts  were  made  to  "  down  "  the 
new  bank,  but  it  stood  its  ground  bravely, 
and  came  through  this  trying  period  of  its 
youth  with  flying  colors. 

As  is  well  known,  the  unscrupulous  "  wild- 
cat" banker,  in  securing  his  charter,  some- 
times located  his  "  bank  "  in  some  obscure 
and  inaccessible  place,  where  there  would 
be  little  likelihood  of  his  currency  being 

82 


JONATHAN    BURR 


83 


presented  for  redemption.  In  a  case  of 
this  nature  the  Merchants'  Loan  and  Trust 
Company  would  collect  a  large  amount  of 
the  currency  and  dispatch  a  representative 
to  find  the  bank  if  he  could.  The  cur- 
rency would  then  be  presented  for  redemp- 
tion in  gold.  If  the  alleged  bank  was  not 
able  to  come  to  time,  complaint  was  made 
in  due  form  to  the  State  auditor,  who 
promptly  closed  the  bank  and  sold  the 
securities  to  satisfy,  as  far  as  possible,  the 
indebtedness.  Two  clerks  of  the  Mer- 
chants' Loan  and  Trust  Bank  were  once 
sent  on  an  errand  of  this  kind  to  the 
southern  part  of  the  State  to  find  a  town 
not  on  the  map.  They  found  it,  after 
considerable  search,  but  before  they  could 
accomplish  their  mission  the  enraged  na- 
tives, proud  of  having  a  real  "  bank  "  in 
their  village  and  alarmed  at  the  possibility 
of  losing  it,  pitched  upon  the  young  men 
tooth  and  nail  and  drove  them  from  the 
town.  The  disgruntled  clerks  were  obliged 

84 


ISAAC  N.  ARNOLD 


to  return  to  Chicago  with  the  original  cur- 
rency. 

During  these  days  of  "  wildcat  "  banking 
the  Merchants'  Loan  and  Trust  Company 
determined  that,  in  self-defense,  it  would 
start  a  bank  of  its  own  and  issue  a  circula- 
tion. So  it  put  up  good  substantial  bonds 
with  the  auditor  of  public  accounts  at  Spring- 
field, and  started  the  Reapers'  Bank  of  Fair- 
field,  Wayne  county,  Illinois.  The  money 
was  issued  and  paid  out  to  a  very  consid- 
erable extent  by  the  bank.  A.  H.  Burley 
was  made  its  president  and  did  then  and 
there  sign  its  bank  notes. 

It  was  desired  by  the  regular  banks  to 
know  how  far  these  "  wildcat "  banks  were 
justified  in  paying  out  subsidiary  coin  in 
the  redemption  of  their  notes,  which 
called  for  payment  in  "  coin  ;"  but  none 
was  willing  to  commit  itself  to  be  used 
to  decide  the  question  except  the  Mer- 
chants' Loan  and  Trust  Company,  which 
owned  the  Reapers'  Bank.  So  James 


SOLOMON    A.  SMITH 


87 


M.  Adsit,  a  private  banker  in  Chicago, 
employed  Ambrose  Burnham  as  his  mes- 
senger, and  gave  him  a  quantity  of  notes  of 
the  Reapers'  Bank  to  present  for  redemp- 
tion at  the  bank  of  Fairfield. 

In  order  to  redeem  the  notes  when  pre- 
sented, the  president  of  the  Reapers'  Bank, 
Mr.  Burley,  went  at  the  same  time  with 
a  quantity  of  subsidiary  coin  to  Fairfield. 
He  and  Mr.  Burnham  went  together.  They 
took  the  Illinois  Central  road  to  Centralia, 
and  from  there  traveled  by  wagon  to  Fair- 
field,  which  consumed  a  good  part  of  one 
day.  On  arriving  at  Fairfield  they  hunted 
up  the  nominal  cashier  of  the  Reapers' 
Bank.  Having  no  office,  the  bank,  was  there- 
upon established  in  a  room  in  thehotel. 

Mr.  Burnham  produced  his  notes  and 
said  to  the  cashier,  "  Here  are  some  notes 
of  the  Reapers'  Bank  which  I  wish  to  have 
redeemed,  according  to  the  terms  of  the 
notes,  in  coin."  The  cashier  said,  "  Very 
well."  Mr.  Burnham  presented  a  note,  it 


E.  K.  ROGERS 


may  have  been  a  ten  or  twenty-dollar  note, 
and  the  cashier  turned  to  Mr.  Burley,  the 
president  of  the  bank,  who  immediately 
had  him  count  out  dimes  and  quarter-dol- 
lars in  sufficient  amount  to  redeem  the 
note.  Mr".  Burnham  refused  to  take  the 
money,  and  said,  "  You  refuse  to  redeem 
these  notes  in  anything  but  subsidiary 
coin?"  The  cashier  said,  "  Yes,  we 
refuse  to  pay  anything  else  under  the  cir- 
cumstances." Mr.  Burnham  and  the  presi- 
dent of  the  bank  then  took  their  wagon  and 
returned  to  Chicago,  whereupon  Mr.  Adsit, 
who  had  sent  Mr.  Burnham  to  Fairfield  as 
his  messenger  to  get  the  notes  redeemed, 
protested  the  notes ;  but  before  any  suit 
could  be  settled  in  the  matter  the  whole 
system  of  Illinois  banks  collapsed.  The 
notes  of  the  Reapers'  Bank  were  redeemed 
according  to  their  terms  at  face  value  in 
Springfield  by  the  auditor  of  public 
accounts.  Of  course,  the  bank  was  discon- 
tinued, as  others  were. 


EDWIN    BLACKMAN 


91 


An  Incident  of  the  Fire. 

From  a  recent  article  in  the  Banking  Law  Journal 
of  New  York :  "  It  was  a  time  that  tried  men's 
souls.  The  ruin  and  desolation  seemed  as  com- 
plete as  the  fire  fiend  could  make  it,  but  there  was 
too  much  American  grit  in  the  Chicago  bankers  to 
be  even  dismayed.  They  opened  their  banks  with 
the  smoke  of  the  fire  filling  their  eyes.  A  most 
characteristic  evidence  of  the  heroic,  self-reliant 
spirit  which  animated  them  is  found  in  the  record 
of  the  proceedings  of  the  first  meeting  of  the  Board 
of  Directors  of  The  Merchants'  Loan  &  Trust  Com- 
pany after  the  fire.  It  was  the  iyth  of  October, 
eight  days  after  the  calamity.  There  is  no  allusion 
whatever  to  the  fire,  but  a  resolution  was  passed 
which  read :  '  Resolved,  That  this  concern  open  to 
general  business  this  day.'  It  is  safe  to  say  that 
such  a  record  of  audacious  coolness  is  unparalleled 
in  the  history  of  the  commerce  of  tne  world." 

THE   experience   of  the  bank   at  the 
time    of    the   fire   was   remarkable. 
Monday  morning  at  2  o'clock,  when 
the    flames    were  eating  away  block   after 
block  of  buildings  but  a  short  distance  from 


DR.  J    II.  FOSTER 


the  bank,  and  advancing  with  fearful  rapid- 
ity every  moment,  Mr.  Henrotin  and  Mr. 
Smith  opened  the  money  vault  and  ex- 
tracted all  its  contents,  consisting  of  about 
$1,000,000  in  bonds  and  greenbacks  of 
large  denominations  and  about  $3,000,000 
in  securities,  notes,  etc.  A  clerk  who  ran 
by  at  the  moment  was  pressed  into  service, 
and  the  treasure  was  piled  on  the  counter 
and  equally  divided  in  weight  into  three 
bundles.  Then  the  three  men,  each  with 
over  a  million  of  money  in  his  arms,  went 
out  into  the  panic-stricken  crowd  that 
thronged  the  streets,  and  made  for  Michi- 
gan Avenue.  Men  crazed  by  whiskey,  and 
thieves  and  roughs  ready  for  any  opportu- 
nity to  pillage,  swarmed  everywhere,  but  the 
treasure-bearers  had  taken  the  precaution 
to  put  on  slouch  hats  and  to  throw  old  coats 
over  their  burdens,  so  they  were  unmolested. 
The  crowd,  in  one  way  their  danger,  was  in 
another  their  safeguard.  They  ran  down 
Michigan  Avenue  to  Terrace  Row,  where 

94 


JOHN    HIGH,  JR. 


95 


P.  L.  Yoe,  one  of  the  directors,  lived. 
Here  the  treasure  was  all  dumped  on  the 
floor.  At  10  o'clock  in  the  morning  it  was 
taken  to  the  residence  of  John  Borland  on 
Indiana  Avenue,  and  from  there  it  was 
taken  to  the  house  of  Mr.  Smith  at  Har- 
mon Court  and  Wabash  Avenue,  where  an 
improvised  bank  was  made  of  the  basement 
dining  room. 

Monday  afternoon,  when  the  ruins  of  the 
bank  were  visited,  it  was  discovered  that 
most  of  the  books  were  destroyed.  A  heavy 
marble  slab,  forming  the  top  of  the  vault,  had 
broken  under  the  enormous  weight  of  debris 
and  had  exposed  everything  to  the  flames. 
What  made  the  loss  particularly  exaspera- 
ting was  the  fact  that  a  large  proportion  of 
the  bank's  customers  had  also  lost  their 
books.  What  to  do  was  a  problem.  Whether 
to  attempt  a  settlement  with  depositors 
without  recourse  to  legal  proceedings  which, 
if  begun,  would  never  terminate,  was  freely 
discussed.  Mr.  Henrotin  was  young  and 

96 


CYRUS    H.   McCORMICK 


enthusiastic  and  confident  that  a  reconstruc- 
tion could  be  effected  on  the  basis  of  mutual 
agreement.  The  trustees  finally  agreed  to 
attempt  this  plan. 

So,  as  the  depositors  appeared,  one  after 
another,  the  case  was  explained,  the  depos- 
itors were  thrown  upon  their  honor,  and  an 
adjustment  was  amicably  and  satisfactorily 
agreed  upon.  Over  one  thousand  accounts 
were  thus  reopened  without  a  note  of  dis- 
satisfaction. This  peculiar  method  of  bank- 
ing, perhaps  without  a  parallel,  was  rendered 
possible  only  by  the  general  high  character 
of  the  bank's  customers.  So  prosaic  and 
commonplace  is  the  routine  of  banking,  or- 
dinarily, that  an  incident  of  this  kind  seems 
almost  dramatic. 

Without  books  the  bank  proceeded  to 
transact  business,  paying  checks  and  receiv- 
ing deposits  as  though  nothing  had  hap- 
pened ;  and  three  weeks  after  the  night  of 
the  fire  the  cashier  presented  the  surprised 
and  gratified  stockholders  with  a  new  bal- 

98 


GEORGE    STEELE 


ance  sheet,  with  every  account  satisfactorily 
reopened  and  actually  showing  the  bank  to 
be  in  better  financial  condition  than  on  the 
day  before  the  fire.  The  earnings  of  the 
three  weeks  had  been  greater  than  the  total 
loss  sustained. 


100 


GEORGE    ARMOUR 


101 


Biographical. 

IN  looking  over  the  names  of  the  thirteen 
original  trustees  of  the  bank,  those 
familiar  with  Chicago  at  that  period 
(1857)  will  recollect  that  these,  with  a  few 
others,  not  on  the  board  but  found  in  the 
list  of  stockholders,  constituted  Chicago,  in 
a  large  measure,  so  far  as  its  business  and 
financial  interests  were  concerned. 

The  original  board  of  trustees  is  headed 
by  the  name  of  Isaac  N.  Arnold,  friend 
and  biographer,  at  a  later  date,  of  Abra- 
ham Lincoln,  and  then  easily  the  leader  of 
the  Chicago  Bar. 

It  was  he  who  introduced  a  resolution  in 
Congress  to  so  amend  the  Constitution  as 
to  abolish  slavery  in  the  United  States,  the 
first  step  of  that  nature  taken  by  Congress. 
He  it  was,  also,  who  was  chosen  to  pro- 
nounce the  eulogy  on  the  death  of  Stephen 
A.  Douglas. 


P.  V.  KELLOGG 


103 


Among  other  names  on  that  board  is 
that  of  William  B.  Ogden,  the  first  mayor 
of  Chicago,  a  man  of  national  reputation  as 
a  financier  and  the  leader  of  great  under- 
takings, one  of  the  organizers  of  the  old 
Galena  and  Chicago  Union  Railroad  Com- 
pany, and  subseqently  president  of  the 
greater  system  known  as  the  Chicago  and 
North-Western  Railway.  Mr.  Ogden  was 
also  an  owner  of  vast  real  properties  in 
Chicago  and  throughout  the  West.  Then 
there  was  Dr.  John  H.  Foster,  one  of  the 
ablest,  most  successful,  most  conservative, 
and  wealthiest  citizens  of  this  city,  whose  real 
estate  investments  were  among  the  largest 
and  wisest. 

Walter  L.  Newberry  was  one  of  the  most 
public  spirited  and  able,  as  well  as  one  of  the 
most  successful  builders  and  founders  of 
Chicago,  and  was  also  one  of  the  organ- 
izers of  the  Galena  and  Chicago  Union 
Railroad,  the  first  line  to  enter  the  city,  and 
one  of  its  presidents.  He  is  at  present 

104 


CHARLES    P.  KELLOGG 


105 


known  to  the  world  by  the  bequest  of  half 
his  great  fortune  in  establishing  the  New- 
berry  Library  of  Chicago. 

Another  director  was  Henry  Farnam, 
the  contractor  for  the  building  of  the 
Chicago  and  Rock  Island  Railroad  and 
one  of  its  presidents,  a  man  of  the  highest 
character  and  ability  as  well  as  of  large 
fortune. 

Jonathan  Burr  was  one  of  Chicago's  most 
progressive  business  men  and  one  of  its 
greatest  philanthropists,  bequeathing  as  he 
did  his  handsome  fortune  largely  to  public 
charities. 

George  Steele  was  one  of  the  leading 
business  men  of  that  time  and  President 
of  the  Board  of  Trade. 

John  H.  Dunham  was  one  of  the  fore- 
most merchants  of  the  city  and  was  prom- 
inent at  the  time  because  of  the  initiative 
he  took  in  the  city's  improvements. 

F.  B.  Cooley  was  a  great  merchant  and 
was  at  the  head  of  the  foremost  dry  goods 

106 


GEORGE    M.  PULLMAN 


107 


house  of  that  day.  known  as  Cooley.  Far- 
well  &  Co. 

Augustus  H.  Burley.  a  prominent  mer- 
chant of  early  Chicago  and  a  man  having 
substantial  interests  in  the  city,  still  remains 
a  director  of  the  bank. 

John  High  was  a  member  of  the  firm  of 
Magie  &:  High,  a  house  dating  back  to  1835 
ami  one  of  the  most  successful  organized 
in  Chicago  at  that  date. 

D.  R.  Hok  was  an  early  Indian  trader  at 
Mackinac  and.  afterward  a  lumber  merchant 
of  the  most  extensive  operations. 

\V.  E.  Doggett  was  one  of  Chicago's  suc- 
cessful shoe  merchants  and  a  representa- 
tive citizen. 

These  were  the  men  who  constituted  the 
ficst  board  of  trustees  of  the  Merchant's 
Loan  and  Trust  Company  Bank.  They 
brought  to  the  management  of  the  bank 
the  same  caution,  conservatism,  and  high 
sense  of  honor  that  they  exercised  in  the 
conduct  of  their  private  affairs. 


PETEK  I.  TOE 


The  drift  which  they  gave  to  the  bank 
and  to  the  management  of  its  business  it 
has  always  sought  to  maintain,  as  being 
always  in  the  path  of  wisdom  and  safety. 

Since  its  organization  there  have  been 
many  men  associated  with  the  bank,  either 
as  directors  or  as  stockholders,  who  have 
been  distinguished  in  the  financial  and  com- 
mercial business  circles  of  Chicago ;  such 
as  Cyrus  H.  McCormick,  the  man  of  whom 
William  H.  Seward  said,  "His  invention 
moves  the  line  of  civilization  thirty  miles 
west  every  year;"  George  M.  Pullman,  the 
man  who  increased  the  commercial  possi- 
bilities of  the  country  by  comfort  and  facility 
of  travel;  P.  L.  Yoe,  one  of  Chicago's 
pioneers,  and  for  over  half  a  century  a 
prominent  business  man ;  Solomon  A.  Smith, 
a  man  who  conducted  the  affairs  of  the 
bank  through  the  critical  times  of  the  re- 
bellion with  credit  to  himself,  the  bank,  and 
the  Western  country ;  John  DeKoven,  an- 
other pioneer  of  Chicago,  who  devoted  a 

no 


FRANK    C.  OSBORN 


111 


lifetime    to  the  upbuilding  of  the  banking 
interests  of  Chicago. 


112 


JOHN    DE  KOVEN 


113 


To  know  something  of  the  personal  side 
of  the  men  interested  in  the  development  of 
a  bank  so  long  and  prominently  identified 
with  the  city's  financial  interests,  is  to 
know  somewhat  of  the  forces  back  of  the 
advancement  that  is  going  on. 


114 


UNIVERSITY  OF  ILLINOIS-URBANA 

332.1M5365A  C001 

THE  ADVANCEMENT  OF  CHICAGO  AS  A  FINANCIA 


30112025290948 


